Islamic Development Bank to sell 500 million euro sukuk
Credit Agricole, LBBW, Natixis and Standard Chartered are arranging the transaction, which will be finalised later on Wednesday
DUBAI: The Jeddah-based Islamic Development Bank (IsDB) is selling euro-denominated sukuk expected to be 500 million euro (Dh2.08 billion; $567 million) in size, a document by one of the banks leading the deal showed on Wednesday.
IsDB, a triple-A rated institution, is a regular issuer of international sukuk, or Islamic bonds, which it raises to fund its business activities and to promote the international sukuk market by building a liquid yield curve.
The sukuk, or Islamic bonds, are marketed with a price guidance of around 22 basis points over mid-swaps.
Credit Agricole, LBBW, Natixis and Standard Chartered are arranging the transaction, which will be finalised later on Wednesday.
Last month IsDB raised $1.3 billion in senior, unsecured sukuk with a five-year maturity and a profit rate of 3.389 per cent, corresponding to a spread of 32 basis points over mid-swaps.
— Reuters